CURRENT SITUATION OF SMALL BUSINESS FINANCIAL AND CREDIT SUPPORT IN UKRAINE

Abstract

Keywords: small business, financial support, self-financing, government financing, bank lending The purpose of the study is to investigate the problems and find ways to improve the efficiency of financial support for small business in today's business environment. Research results. Summarizing the research findings, it can be stated that small business is characterized by a lack of sufficient financial resources, which is facilitated by a variety of reasons: insufficient level of profit, lack of knowledge and ability to make depreciation, insufficient level of own savings and funds formed. All this necessitates the development of a broad network of financial and credit support for small businesses. Particularly urgent is the issue of lending to small businesses in rural areas, the vast majority of which are limited in lending opportunities, characterized by low competitiveness and lack of qualifications for obtaining a loan. Not every small business is able to pay high enough interest rates. Thus, the high cost of lending makes banking resources for small businesses unprofitable. A major problem for most small businesses is securing a loan, that is, a security deposit. Public financial support for the creation and development of small businesses is not yet effective enough. Its improvement requires the solution of three key problems: the creation of an extensive network of small cooperative banks specializing in lending to small businesses; expanding the base of lending to small business entities and reducing interest rates on loans; intensification of cooperation with foreign financial institutions operating in the field of small business. Due to unfounded tax reform, the fiscal burden on small businesses has increased, and relations with the fiscal authorities have remained unsettled. Due to the limitation of the possibility to include in the expenses of the taxpayer the sums paid or accrued in favor of the individual - the payer of a single tax for the services rendered by that person, the delivered goods, works performed, thousands of natural persons-payers of a single tax - are left to attribute to the costs without the market of their sales. goods and services and are forced to close their businesses. Non-banking financial institutions play a significant role in lending to small businesses. The formation of non-banking institutions at the regional level should have high-quality organizational support, which requires the interaction of local governments, financial institutions and business entities. Therefore, creating an effective support system for small businesses, including close interaction between banking institutions and the non-banking financial sector, credit unions, insurance funds, leasing, venture capital firms, creates the basis for flexible credit policies, effective financing for small businesses. Addressing the range of problems associated with the financial support of small businesses will significantly increase the role of this important segment of the economy in deepening rural market relations. Conclusions. Therefore, the structure of financial support for small business development is suboptimal: self-financing is the preferred form of financing, while the sources involved must ensure the effective development of small business. Conducting active economic reforms, stable political situation will contribute to stabilization and further growth of the economy, which in turn will expand sources of financing, increase the effectiveness of financial support, activate the development of small business as a whole.